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Staffing Firm Owner Pleads Guilty

January 26 2012

A Massachusetts staffing firm owner pleaded guilty to workers’ compensation fraud and larceny for underreporting the size of his business to avoid paying $110,000 in workers’ compensation premiums, the Massachusetts Attorney General’s office reported.

The owner, Dara Duong, was sentenced to two-and-a-half years, according to the Attorney General’s office, but that sentence was suspended and he won't serve time. Duong will still face three years of probation, must pay full restitution and perform 400 hours of community service.

Duong underreported his companies’ payrolls, the total number of employees, and the number of clients his employees worked for from 2006 through 2008, according to the office. He also misrepresented job classifications as part of a plan to avoid paying higher workers’ compensation premiums to two insurance companies.

The defendant owned three staffing firms in Lowell, Mass., according to the office. The firms supplied laborers such as factory workers. The firms’ names included Middlesex Temporary Agency, Ankgor Staffing Inc. and General Labor Services.

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Chad 01/26/2012 10:25 pm

Surprised more staffing firms don't get caught fudging their comp codes! Happens far too often!


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